Ethereum’s price is still just below the $3900 mark, even though it enjoys a four-month high in exchange supply.
With the underlying value increasing, the Ethereum (ETH) supply on centralized exchanges retests the six-year low. The price of ether relative to the US dollar has risen by over 32% over the past two weeks, and as of Tuesday, it was trading at over $3,890. IntoTheBlock’s most recent on-chain statistics, however, indicate that on Saturday, the net flow of Ethereum into centralized exchanges hit a four-month high, totaling over 140k units.
Strong Ethereum inflows into centralized exchanges indicate more substantial selling pressure, which may put significant pressure on buyers. Furthermore, more investors are placing bets, hoping the final documents will be approved quickly to begin spot Ether ETF trading.
Rise in Ethereum Indicates the Coming of Altseason
The recent surge in Ethereum (ETH) prices amidst the continuous consolidation of Bitcoin prices has reignited the cries for an upcoming all-season, as Coinspeaker previously highlighted. The dominance of Bitcoin has already collapsed despite its upward trend, and market analysts predict more drops in the forthcoming months.
Furthermore, the weekly time chart for the ETH/BTC pair indicates a historical reversal of the falling channel will occur in the next few weeks. More cryptocurrency investors have increased their rotation of crypto funds to medium- and small-cap cryptocurrencies to optimize profits.
Among numerous other meme coins that are now in the price discovery stage, Pepe (PEPE), Floki Inu (FLOKI), and Turbo (TURBO) are among those that exhibit extreme volatility.
In an ideal world, more Ethereum owners would transfer their holdings to centralized exchanges to split the recent gains among various possibly lucrative trading arrangements, particularly for meme coins.
Mid-Term Price Objectives for Ethereum (ETH)
The price of Ethereum has repeatedly flirted with rising above $4k without really succeeding. Market analysts, however, are optimistic that Ethereum’s value relative to the US dollar will increase over the next two months and approach its all-time high. A short squeeze can occur simply because institutional and individual traders strongly demand Ethereum.
Technically speaking, a rally above $4,325, which corresponds with the daily 3.618 Fibonacci Extension, will be inevitable if buyers of Ethereum (ETH) can continuously pump the altcoin above the liquidity zone between $3,946 and $3,987.
If the bulls fail to break above $3,920 in the next few days, the altcoin will be ready to retreat toward $3,526—the 1.618 Fibonacci Extension.
Market Overview
With over $66 billion in total value locked (TVL) and a thriving web3 ecosystem powered by its interoperability, the Ethereum network is proud of both accomplishments. The idea that Ethereum is a commodity rather than a security asset has gained traction with the recent approval of spot Ether ETFs.